The words ‘we are a neighbourhood watch community’ were changed to ‘we are a drug filled community’ on the welcome sign, on Wakefield Road.
The sign was vandalised around a week ago before being cleaned by Wakefield Council.
The council was made aware of the graffiti after a picture was posted on social networking site Twitter.
A spokeswoman said the damage was reported to the council on Tuesday morning and that it had been removed before 11am.
Coun Ann Westmorland, Fitzwilliam town councillor, said: “What is wrong with people? We fought long and hard to get those signs a few years ago, to try and make the entrance to the village look nice and so that people knew where we were.
“We had a remembrance parade through the village on Sunday and residents could see that awful grafitti on the sign. Whoever did it should be ashamed.”
Anyone who has any information about the vandalism should call the NPT on 101.